Tue, 25 Jun 2019

Environmentalist groups have filed a complaint with the European Union's energy watchdog to challenge the legality of the sale of a planned $1.3 billion coal-fired power plant in Kosovo.

Five local and international environmental groups that filed the complaint on May 13 with the Vienna-based Energy Community body say the deal will strain Kosovos state budget and lead to higher costs for consumers.

In their complaint, the environmental groups argued that the deal does not comply with EU rules on state aid because it provides the London-listed power firm ContourGlobal with 'a range of benefits that give it an unfair advantage over other energy producers.'

Kosovo and ContourGlobal on May 3 chose a consortium of General Electric subsidiaries to build the 500-megawatt plant.

The power plant is meant to meet nearly half of Kosovo's power demand, and the government in Pristina has committed to buying its total output over 20 years.

But the contract still awaits ratification by Kosovos parliament.

Based on reporting by Reuters and AP

Copyright (c) 2018. RFE/RL, Inc. Republished with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave NW, Ste 400, Washington DC 20036

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